Daijiworld Media Network – Mumbai

Mumbai, Mar 29: In a major win for electricity consumers across Maharashtra, power tariffs will see a substantial reduction from the financial year 2025-26 onwards. The Maharashtra Electricity Regulatory Commission (MERC) has approved a reduction in electricity rates for consumers of Maharashtra State Electricity Distribution Company Limited (MSEDCL), also known as Mahavitaran.

According to MERC’s latest order, issued late Friday night, tariffs will be reduced by 10% in FY 2025-26 and further decline by a cumulative 16% by FY 2029-30, as compared to the current rates. This decision contrasts with Mahavitaran’s proposal for no revision in FY 2025-26 and a modest reduction of 3.6% by FY 2029-30. The tariff reduction is backed by a projected revenue surplus of Rs 44,481 crore, resulting in an overall reduction in the cost of electricity supply.

Residential consumers will experience a tariff reduction ranging between 10-12% across all slabs. Consumers in the 1-100 unit consumption category will see a drastic 24% cut by FY 2029-30. Time-of-Day rebates will be introduced, allowing residential users to enjoy a rebate of ?0.80 to ?1.00/kWh for electricity used during solar hours (9 AM to 5 PM).

Industrial consumers will benefit from a significant reduction in cross-subsidy charges. High-tension (HT) industries will see a reduction from 113% to 101%, while low-tension (LT) industries will benefit from a drop from 108% to 100%. This will bring electricity costs closer to the average cost of supply (ACoS). HT industries will experience a tariff reduction of 15% in FY 2025-26, with a further annual decline of 4% until 2029-30. LT industries will see an 11% reduction in FY 2025-26, with a 3% annual drop thereafter. MERC has reclassified data centers and semiconductor units as industrial consumers, making them eligible for lower electricity rates. Additionally, these sectors will receive a 10% discount on wheeling charges if they opt for 100% green energy.

Hotels, resorts, and guest houses, previously categorized under the commercial tariff, will now be billed under the industrial tariff, significantly reducing their power costs. Additional rebates will be provided based on location – Rs 0.25/unit in B-Zone cities, Rs 0.50/unit in C-Zone cities, and Rs 0.75/unit in D-Zone cities. Commercial consumers will also see relief, with cross-subsidy charges reduced from 174% to 127% for HT-commercial consumers and from 151% to 130% for LT-commercial users. This results in a 30% tariff cut for HT-commercial and a 20% reduction for LT-commercial consumers.

To promote electric vehicle (EV) adoption, MERC has scrapped fixed demand charges for EV charging, aligning with the Ministry of Power’s guidelines. With a marginally lower rate and time-of-day benefits, EV users will see an 8-10% reduction in electricity costs. Agricultural consumers will continue to receive highly subsidized electricity rates, with a billing-to-cost ratio of just 57%. The expansion of solar-powered agricultural feeders is expected to reduce supply costs further in the coming years.

MERC has streamlined tariffs by merging Government Public Services (educational institutions & hospitals) with Other Public Services, ensuring uniform charges across both high-tension (HT) and low-tension (LT) categories.

Mahavitaran Chairman & Managing Director, Lokesh Chandra, acknowledged that such a significant tariff reduction is unprecedented in the company’s history. Independent director Vishwas Pathak attributed this positive change to the Chief Minister’s Solar Agriculture Feeder Project 2.0, which aims to supply affordable solar power to both farmers and industrial consumers.

This major revision in electricity tariffs is expected to provide substantial relief to residential users, industries, and businesses across Maharashtra while promoting sustainable energy solutions.